Real and nominal values
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Real and nominal values
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Last edited by nynysf on Sun Jun 06, 2010 8:44 pm, edited 1 time in total.
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- Non-normality and collinearity are NOT problems!
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Re: Real and nominal values
nynysf wrote:Hi guys,
This is my second post on EViews, I'm hoping someone can respond to at least one of my questions. Thank you in advance. I am doing research on how educational attainment is affected by an economic crisis. I have two data points, one pre-crisis and one post-crisis. I ran a regression, but family expenditures were left in nominal and not real values. I found that educational attainment went down after the crisis. Could this be attributed to inflation? Are the results of my regression meaningless now?
Thank you very much!
(a) You almost certainly want all the values to be in real terms, but recent inflation has been so low that it is unlikely to make much difference.
(b) Two data points isn't enough to run a meaningful regression.
Re: Real and nominal values
Thank you so much! I'm so glad somebody replied to both posts!
Maybe I am not making myself very clear, I mean I have data sets from two different points of time.
By the way, I am using the Indonesian Family Life Survey data set. I took the 1997 data set and the 2000 data set.
Does that make more sense?
Maybe I am not making myself very clear, I mean I have data sets from two different points of time.
By the way, I am using the Indonesian Family Life Survey data set. I took the 1997 data set and the 2000 data set.
Does that make more sense?
-
- Non-normality and collinearity are NOT problems!
- Posts: 3775
- Joined: Wed Sep 17, 2008 2:25 pm
Re: Real and nominal values
Perfectly sensible. You probably should do it in real terms then, although it probably still won't make an enormous difference.
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